Affirm, Sprouts Farmers upgraded: Wall Street’s top analyst calls

The most talked about and market moving research calls around Wall Street are now in one place. Here are today’s research calls that investors need to know, as compiled by The Fly.

Top 5 Upgrades:

• BofA upgraded Affirm (AFRM) to Buy from Neutral with an unchanged price target of $36. The firm says Affirm’s fiscal Q4 print and guidance could be a positive catalyst, and fiscal 2025 estimates “seem achievable.”
• Wells Fargo upgraded Sprouts Farmers Market (SFM) to Equal Weight from Underweight with a price target of $90, up from $62. An “impressive” Q2 provides the best evidence yet of Sprouts Farmers Market’s remarkable turnaround, the firm says. BMO Capital also upgraded Sprouts Farmers Market to Market Perform from Underperform with a price target of $102, up from $40.
• Baird upgraded Varonis Systems (VRNS) to Outperform from Neutral with a price target of $60, up from $52. The company is seeing strong momentum in its software-as-a-service offerings, driving new business and conversions, the firm tells investors in a research note.
• Baird upgraded BrightView (BV) to Outperform from Neutral with a price target of $17, up from $13. The stock’s risk/reward “screens more favorably” with an improved company strategy and early signs of improved execution, the firm says.
• H.C. Wainwright upgraded Collegium Pharmaceutical (COLL) to Buy from Neutral with a $47 price target. The acquisition of Ironshore Therapeutics adds a “differentiated” ADHD asset to bolster its portfolio, the firm tells investors in a research note.

Top 5 Downgrades:

• Citi downgraded Integra LifeSciences (IART) to Sell from Neutral with a price target of $23, down from $30. The company delivered a better-than-expected quarter, but then talked down estimates with the implementation of a compliance master plan, which includes a ship hold on certain products, the firm notes. BTIG also downgraded Integra LifeSciences to Sell from Neutral with a $22 price target following Q2 results.
• BofA downgraded Lattice Semiconductor (LSCC) to Underperform from Neutral with a price target of $47, down from $83, citing slowing growth and muted visibility. Q2 sales came in below the midpoint of guidance and the Q3 outlook was also below consensus, notes the firm.
• JPMorgan downgraded Frontier Group (ULCC) to Underweight from Neutral without a price target. The firm is “growing increasingly uncomfortable” with Frontier’s dependence on sale leasebacks, noting the proceeds from which, in some instances, account for the entirety of the airline’s profit.
• JPMorgan downgraded Novavax (NVAX) to Underweight from Neutral with an unchanged price target of $8. The firm believes current share levels “substantially overvalue” the potential Nuvaxovid economics and revenue to Novavax.
• KeyBanc downgraded Criteo (CRTO) to Sector Weight from Overweight without a price target ahead of the earnings report on August 1. The firm believes the positive catalysts from Privacy Sandbox changes and Retail Media are now priced into the shares, leaving investors with a more balanced risk/reward into a mixed macro environment for retail.

Top 5 Initiations:

• BofA reinstated coverage of Whirlpool (WHR) with an Underperform rating and $88 price target. The firm says recent takeover speculation “appears to have faded,” which allows Whirlpool to return to trading on fundamentals.
• RBC Capital initiated coverage of Ligand Pharmaceuticals (LGND) with an Outperform rating and $130 price target. The firm believes the shares should re-rate higher as Ligand delivers on its growth guidance, with upside potential from upcoming investment-related catalysts “which occur with regular cadence.”
• Wedbush initiated coverage of Corbus Pharmaceuticals (CRBP) with an Outperform rating and $85 price target. The firm believes the company’s lead program CRB-701 has “best-in-class potential” with more data expected in Q1 of 2025.
• H.C. Wainwright initiated coverage of Gryphon Digital Mining (GRYP) with a Neutral rating and no price target. The firm says it is “both curious and overall bitcoin optimistic such that the risk-reward of a Gryphon investment could turn decidedly positive post lawsuit overhang, despite not recommending the shares at this juncture.”
• H.C. Wainwright initiated coverage of Adaptimmune Therapeutics (ADAP) with a Buy rating and $4 price target. The firm believes the company has the potential to reshape the treatment landscape for solid tumors by leveraging its integrated TCR-T platform.